BCM AG (nine-month report): Despite corona stable margin above 20% with significant increase in order intake

- BCM Group generates revenue of € 33.9 million in the first nine months of financial year 2020; decline of -16% compared to (pro forma) previous year's period

- Adjusted EBITDA margin remains stable above 20% as in H1 2020

- Significant increase in group order intake Q3 2020 of +24% compared to Q2 2020

- Capital increase from the listing fully available for acquistions; total cash of
€ 122 million

Frankfurt/Main, November 24, 2020. Brockhaus Capital Management AG (BKHT, ISIN: DE000A2GSU42, "BCM"), a long-term oriented technology group focused on acquiring high-margin and high-growth technology champions within the German Mittelstand, published its nine-month figures for the financial year 2020.

In the first nine months of financial year 2020, BCM Group generated revenue of € 33.9 million. This represents a decline of -16% compared with the previous pro forma reporting period 9M 2019. The reason for this was the COVID-19-related revenue decline of the Security Technologies segment. In the Environmental Technologies segment, however, BCM Group continued to increase revenue significantly. Nevertheless, given its smaller absolute size compared with the Security Technologies segment, it could not fully compensate the decline in business. On a non-pro forma basis, i.e. including inorganic growth through acquisitions, revenue grew by +290.4% compared with the same period of the previous year. With an adjusted EBITDA of € 7.0 million, BCM has also kept the margin constantly above 20% as in H1 2020. In addition, order intake of BCM Group increased significantly by +24% in the third quarter, as compared with Q2 2020.

As of the reporting date, cash amounted to approximately € 122 million. On this solid basis, BCM Group believes it is well equipped to respond flexibly to attractive acquisition opportunities.

Revenue in Environmental Technologies segment grows by +17%; continued strong demand with a massive increase in order intake compared with 9M 2019

In the Environmental Technologies segment - consisting of Palas - revenue in the first nine months increased by +17.3% despite the COVID-19 pandemic. Although the first quarter was comparably weak due to general revenue fluctuations between the quarters and the initial effects of the lockdowns, customer demand grew significantly in the second and third quarters. The COVID-19 pandemic has brought aerosols (particles in air) into the center of public attention and Palas has successfully positioned itself as a technology leader with its aerosol measurement technology. Especially test rigs for the effectiveness control of respiratory masks continued to sell particularly well. Other products related to aerosole measurement, for instance indoor or exhalation measurement, have followed or will follow. Order intake in the reporting period was massively above the same period of the previous year 9M 2019.

In addition, on August 27, 2020 Palas filed a patent with the European Patent Office for a measurement device for the immediate detection of particle number and size in exhaled air. The universally applicable measurement device developed by Palas can immediately identify particles in exhaled air with high-precision size resolution and could thus help to detect infectivity in human beings. This could in particular contribute to the containment of the current COVID-19 pandemic. The patent application has not yet been disclosed. A patent application is generally published 18 months from the filing date and the patentee is only entitled to rights from the patent application after this period.

Significant increase in order intake in the Security Technologies segment, despite COVID-19 related project postponements

The Security Technologies segment recorded a decline in revenue of -25.1% in 9M 2020. After revenue in the first quarter was substantially higher than in the same period of the previous year, the development deteriorated significantly in the second quarter, a trend that continued in the third quarter in terms of revenue. Key projects were delayed due to global lockdown measures as well as travel bans and social distancing restrictions. This effect was intensified in the third quarter of 2020 by the comparison to the very successful Q3 2019, which had marked by far the strongest quarter in terms of revenue in the previous fiscal year and in the company's entire history. In terms of order intake, however, the third quarter of 2020 showed a considerable recovery with a significant increase compared to Q2 2020.

As previously announced in the ad-hoc release of November 13, 2020, BCM Group expects a single-digit percentage decline in revenue for the 2020 financial year compared with the (pro forma) revenue of € 54.3 million in the previous year 2019. However, given the "mission critical" nature of its technologies, BCM Group expects significant catch-up effects in the following year 2021, subject to the continuing uncertainties regarding the course, duration and impact of the COVID-19 pandemic on global economic development.

The quarterly report 9M 2020 is now available at https://ir.bcm-ag.com/publications.html.

Financial Calendar

April 15, 2021 Annual Report 2020
May 15, 2021 Quarterly Report Q1 2021
June 16, 2021 Annual General Meeting 2021

About Brockhaus Capital Management

Brockhaus Capital Management AG (BKHT, ISIN: DE000A2GSU42, "BCM"), based in Frankfurt/Main, is a technology group acquiring high-margin and high-growth technology champions with B2B business models in the German Mittelstand. With a unique platform approach and a long-term horizon, BCM actively and strategically supports its subsidiaries in achieving long-term profitable growth beyond industry and country boundaries. At the same time, BCM offers a gateway into these non-listed German technology champions, which are otherwise inaccessible to capital market investors.

Contact Details

For investors:

Brockhaus Capital Management
Paul Göhring
Head of Investor Relations
Phone: +49 69 20 43 40 978
Fax: +49 69 20 43 40 971
E-Mail: [email protected]

For media:

USC
Iris C. Sistemich
Phone: +49 221 280 655 10
E-Mail: [email protected]